Indian economy from the time of independence was a close economy. Te different political parties came into the power but the type of economic inclination was same for India. I 1991, te new era in Indian economy started with three key words - Liberalization, Gobalization and privatization. Wth the globalization process the restructuring of Indian economy started and some major reforms were observed. Gobalization brings a favorable impact on Economic growth. I 1970, te GDP growth was only 3 % in India. Te countries like Mexico, Bazil achieved twice growth rate than India.
In the eighties, asignificant annual growth was observed from 3% to 5. 9 but still it was comparatively very low compared to countries like China, Krea. I 1991, te GDP was calculated on purchasing power parity basis and Indian economic growth was 0. 9% only. Idian economy achieved a growth rate of 8% in the year 2003-2004. Nt only the high GDP growth was noticed but also a significant structural change was noticed in Indian economy. Bfore the globalization, te maximum amount of GDP from the primary sector.
Bt after globalization, te maximum part of the GDP contribution comes from the service sector. IES-BPO, sftware services providers has achieved a significant growth in recent years. Te service sector is the major employment provider also in Indian Economy. I recent times, te service sector has a great contribution in the national income also. Te reason for growth of service sector is urbanization, pivatization and high demand for consumer service. Te government of India formulated policies to make foreign direct investment in the manufacturing Te in manufacturing sector was 40% in 1950 and it was increased to 90% in the year 1990.
Te overall foreign direct investment increased from US$100 million during 1990-1991 to US$5536 million in 2004-2005. I 2012, Idia has received 4.67 billion US dollars as inflows. Te hotel and tourism received 2.32 billion US dollars inflows, cemicals received 51 million US dollars; parmaceuticals received 987 million US dollars. Idian imports in 2004-2005 were US$ 107 billion. Fom 1991 to 2008, ahuge increase in the export took place in Indian I 1991, was US$ 17865 million and in 2008, i was US$ 182631million.
Te growth of export was comparatively lower than the. ..
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